The auto lending industry is ever-evolving, and staying ahead requires a keen understanding of market trends, partnerships, and innovative solutions. In a recent discussion, we sat down with Kevin Usiatynski, Chief Revenue Officer at Credit Union Loan Source (CULS), to gain insight into the current state of the auto market, the role of credit unions, and what’s on the horizon for 2025.
The State of the Auto Lending Market
Reflecting on the market's fluctuations over the years, Kevin shared how the COVID-19 pandemic has disrupted traditional auto lending trends.
“Prior to 2020, I could have predicted market cycles fairly easily, but COVID threw everything off balance,” Kevin explained. “Even today, we’re still seeing its impact.”
While new car sales serve as a key bellwether for the auto market, recent years have seen a decline in production, leading to a scarcity of used cars. With used vehicle inventory still tight and leasing significantly reduced, car values have remained unexpectedly stable.
“Some feared a market crash, but the restricted supply of used cars has kept values high,” Kevin noted. “Analysts expect this trend to continue into 2025.”
Despite rising interest rates, demand remains steady, though many consumers are opting for cash deals instead of financing at higher rates.
A Partnership That Delivers Value
The collaboration between Envisant and CULS has proven to be a powerful force in providing credit unions with high-quality loan opportunities. Doug Williams of Envisant highlighted the significance of this partnership, emphasizing its long-term value.
“Credit unions have tried building auto loan programs on their own, but CULS has created a state-of-the-art system that ensures a direct benefit to institutions,” Doug shared.
Beyond offering loan placements, CULS prides itself on fostering lasting relationships. Credit unions that paused loan purchases during liquidity challenges in 2022 and 2023 are now returning, demonstrating the trust and stability within the program. “We’re not here to sell loans once—we want to build partnerships that last for 20 years,” Kevin emphasized.
Innovating for Credit Union Success
With a strong foundation in indirect auto lending, CULS is also expanding its services to address operational challenges faced by credit unions. One standout initiative is a new titling solution designed to minimize errors and streamline processes.
“Titling errors are costly and time-consuming,” Kevin explained. “We’ve developed a database that integrates with loan origination systems to provide accurate tax, title, and registration fees upfront, reducing mistakes and saving institutions time and money.”
This system also performs lien and title checks to prevent fraud, ensuring that credit unions lend on secure assets.
Looking Ahead
As the auto lending landscape continues to evolve, partnerships like the one between Envisant and CULS provide credit unions with the tools and support they need to thrive.
Kevin remains optimistic about the future, saying, “We’ve built a strong foundation, and with new solutions on the horizon, we’re excited to keep evolving and delivering value to our partners.”
For credit unions looking to enhance their auto lending programs, leveraging expertise, technology, and trusted partnerships will be key to success in 2025 and beyond.
